We have equity-based compensation plans that authorize the issuance of equity-based awards for shares of Class A and Class B common stock to directors, officers and key employees. Equity-based compensation grants are designed to reward long-term contributions to Moog and provide incentives for recipients to remain with Moog.

We have an Employee Stock Purchase Plan ("ESPP") that allows for qualified employees (as defined in the plan) to purchase our common stock at a price equal to 85% of the fair market value at the lower of the beginning or the end of the semi-annual offering period.

The 2014 Long Term Incentive Plan ("2014 Plan") authorizes the issuance of a total of 2,000,000 shares of either Class A or Class B common stock. The 2014 Plan is intended to provide a flexible framework that permits the development and implementation of a variety of equity-based programs that base awards on key performance metrics as well as align our long term incentive compensation with our peers and shareholder interests.

During 2022, we granted awards in the form of stock appreciations rights ("SARs"), performance-based restricted stock units ("PSUs"), time vested restricted stock units ("TVAs") and restricted stock awards ("RSAs"). The compensation cost for employee and non-employee director equity-based compensation programs for all current and prior year awards granted are as follows:


	2022		2021		2020
Stock appreciation rights	$	2,370	$	2,345	$	2,643
Performance-based restricted stock units	1,718		1,151		221
Time vested restricted stock units	1,423		602		—
Restricted stock awards	850		730		680
Employee stock purchase plan	2,521		2,633		2,117

Total compensation cost before income taxes	$	8,882	$	7,461	$	5,661
Income tax benefit	$	970	$	893	$	677

The fair value of SARs granted was estimated on the date of grant using the Black-Scholes option-pricing model. The following table provides the range of assumptions used to value awards and the weighted-average fair value of the awards granted.


	2022			2021			2020
Expected volatility	39% - 40%			38% - 41%			27% - 28%
Risk-free rate	1.3		%	0.4% - 0.5%			1.7% - 1.8%
Expected dividends	1.2		%	1.4		%	1.2		%
Expected term	5-6 years			5-6 years			5-6 years
Weighted-average fair value of awards granted	$	27.86		$	23.11		$	21.45

To determine expected volatility, we generally use historical volatility based on daily closing prices of our Class A and Class B common stock over periods that correlate with the expected terms of the awards granted. The risk-free rate is based on the United States Treasury yield curve at the time of grant for the appropriate expected term of the awards granted. Expected dividends are based on our history and expectation of dividend payouts. The expected term of equity-based awards is based on vesting schedules, expected exercise patterns and contractual terms.

The number of shares received upon the exercise of a SAR is equal in value to the difference between the fair market value of the common stock on the exercise date and the exercise price of the SAR. The term of a SAR may not exceed ten years from the grant date. The exercise price of SARs and options, determined by a committee of the Board of Directors, may not be less than the fair value of the common stock on the grant date.

SARs are as follows:


Stock Appreciation Rights	Number of Awards	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding at October 2, 2021	883,423	$	69.37
Granted in 2022	91,788	83.00
Exercised in 2022	(108,390)	46.72
Expired in 2022	(6,963)	70.15
Forfeited in 2022	(1,355)	80.43
Outstanding at October 1, 2022	858,503	$	73.67	5.1 years	$	3,085,580
Exercisable at October 1, 2022	666,816	$	71.65	4.2 years	$	3,085,580

The aggregate intrinsic value in the preceding tables represents the total pre-tax intrinsic value, based on our closing price of Class A common stock of $70.35 and Class B common stock of $71.40 as of October 1, 2022. That value would have been effectively received by the SAR holders had all SARs been exercised as of that date.

The intrinsic value of awards exercised and fair value of awards vested are as follows:


Stock Appreciation Rights	2022		2021		2020
Intrinsic value of SARs exercised	$	3,777	$	3,833	$	2,665
Total fair value of SARs vested	$	2,346	$	2,558	$	2,825

As of October 1, 2022, total unvested compensation expense associated with SARs amounted to $2,663 and will be recognized over a weighted-average period of two years.

PSU awards consist of shares of our stock which are payable upon the determination that we achieve certain established performance targets and can range from 0% to 200% of the targeted payout based on the actual results. PSU's granted in 2022 have a performance period of three years. The fair value of each PSU granted is equal to the fair market value of our common stock on the date of grant. PSUs granted generally have a cliff vesting schedule of three years; however, according to the grant agreements, if certain conditions are met, the employee (or beneficiary) will receive a prorated amount of the award based on active employment during the service period.

PSUs are as follows:


Performance-Based Restricted Stock Units	Number of Awards	Weighted- Average Grant Date Fair Value
Nonvested at October 2, 2021	59,505	$	80.12
Granted in 2022	30,836	83.00
Vested in 2022	(31,404)	85.95
Forfeited in 2022	(493)	79.67

Nonvested at October 1, 2022	58,444	$	78.41

As of October 1, 2022, total unvested compensation expense associated with nonvested PSUs amounted to $2,469 and will be recognized over a weighted-average period of two years.

The number of Class B shares to be issued for PSU awards granted in 2020 that vested based on the achievement of performance targets in 2022, will be approximately 14,500 shares.

TVAs consist of shares of our stock which are payable over a vesting schedule determined at the time the award is granted. TVAs vest in equal fixed dollar tranches over the agreed upon vesting term beginning one year after the date of the grant and will settle using the fair market value of shares on the date of vesting of the tranche. Although it is our intention to settle vested amount in shares, we reserve the right to settle in cash at our discretion.


Time Vested Restricted Stock Units	Number of Awards	Weighted- Average Fair Value
Nonvested at October 2, 2021	26,702	$	77.18
Granted in 2022	30,803	83.00
Vested in 2022	(8,305)	83.00
Forfeited in 2022	(458)	76.38
Period increase (decrease) in 2022	5,817	n/a
Nonvested at October 1, 2022	54,559	$	71.40

As of October 1, 2022, total unvested compensation expense associated with nonvested TVAs amounted to $2,558 and will be recognized over a weighted-average period of two years.

The number of Class B shares to be issued for TVAs that are expected to vest in 2023 from time based service conditions is approximately 21,400 shares, based on our closing price of Class B common stock of $71.40 as of October 1, 2022.

The fair value of each RSA granted is equal to the fair market value of our common stock on the date of grant. These shares vest and are issued upon grant. There were 18,594 RSAs granted and vested in 2022 at a price of $82.79 resulting in a fair value of the RSAs vested of $1,539.


Employee Stock Purchase Plan	2022		2021		2020
Shares issued	139,121		141,647		119,470
Weighted-average price per share	$	67.91	$	58.52	$	58.71